Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Kenya

African tech startups raised Sh19B in 2015

kenyan startups

125 African tech startups received a total amount of funding in excess of $185.7 million (Sh19B) in 2015, according to a report compiled by Disrupt Africa.

South Africa, Nigeria, and Kenya proved investors’ favoured destinations in 2015; with 36 per cent of the startups that raised funding based in South Africa, 24 per cent in Nigeria, and Kenya in third place with 14.4 per cent of deals.

The top three highest amounts of funding also went to these three locations. South African startups raised in excess of US$54,568,000 (Sh5.7B) throughout the year; Nigerian startups received over US$49,404,000 (Sh5.1B); and Kenyan startups brought home over US$47,365,000 (Sh4.9B).

Kenya’s solar power start-up M-Kopa accounted for over 90 percent of financing that flowed towards Kenyan start-ups last year. Other startups that secured significant financing include BRCK (which announced additional funding last week), Kopo Kopo, Angaza, BitPesa and Asoko Insight.

Of the 10 sectors monitored in the report, the solar sector saw the most investor activity, accounting for 32.9 per cent of total funds raised. The fintech sector proved a close second, securing 29.6 per cent of the total funds.

“2015 was an exciting year for African tech startups. Our data shows the increasing vibrancy of our ecosystem, with more quality tech startups, and more investor activity than ever before,” said Gabriella Mulligan, co-founder of Disrupt Africa.

“These are impressive numbers, showing real growth in the amount of funding available to African tech startups, but in reality, they are merely the tip of the iceberg,” said Tom Jackson, co-founder of Disrupt Africa.

“There will have been many funding rounds across the continent that have taken place quietly. But in terms of demonstrating the development of the ecosystem, these figures are an excellent starting point. We expect to see further growth in 2016.”

The report also finds Egypt, Ghana, and Tanzania are key hotspots for funding activity; and provides detailed information for each country, including deals per location, average deal sizes and highlights key deals.

Advertisement. Scroll to continue reading.
Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...